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Show Approval Sought to Build Coal-Gas Plant in Area EI Paso Natural Gas Company this week filed an application with the Federal Power Commission Commis-sion for approval to construct con-struct the world's first commercial complex for conversion of coal' into a synthetic gas with high heating value. The plant and the accompanying coal mine would cost an estimated S420 million. Howard Boyd, chairman chair-man of the board, said the complex will be located lo-cated in northwest New Mexico where a 40,000-acre 40,000-acre coal lease is estimated esti-mated to contain more than 700 million tons of recoverable coal. The El Paso complex is designed to produce 250 million cubic feet of gas per day and will make a significant contribution con-tribution in enabling El Paso to maintain its present pre-sent level of deliveries to southwestern U. S. states, including Cali- forma. Hollis M. Dole, assistant assis-tant secretary-mineral resources of the Department Depart-ment of the Interior, said "the possibility of using the vast coal reserves of the U.S. to produce relatively pollution-free synthetic gas would not only provide vitally needed clean energy but would also create thousands thous-ands of new jobs and opportunities op-portunities for investment invest-ment in this country. The conversion of coal to clean fuels was given strong endorsement by President Nixon in his Clean Energy Message of June 4, 1971." El Paso Natural Gas said that about two and one-half years will be needed for construction of the complex. Assuming Assum-ing prompt governmental approval, initial gas production is scheduled for 1976 with full production pro-duction slated for early 1977. El Paso will use the commercially proven "Lurgi" process in the first phase of the coal gasification. Because the gas from this basic process pro-cess is of low heating value, El Paso is contributing con-tributing to the development develop-ment of a methanation process which will increase in-crease the heat content to that comparable to natural na-tural gas presently moved mov-ed through El Paso's lines. lin-es. Pilot operations have proved the methanation step. El Paso is also participating par-ticipating in other coal gasification research projects, continuing studies stu-dies of the technology which began in the Company Com-pany in the early 1950's. Studies conducted over the past two years demonstrate dem-onstrate that the complex com-plex can utilize the coal to provide badly needed, non-polluting gas with a positive effect upon the environment. Mr. Boyd said that the project, located on the Navajo reservation "will provide significant social so-cial and economic benefits bene-fits to the Navajo tribe and, the surrounding area." ar-ea." El Paso Natural Gas Company is a diversified diversi-fied natural gas transmission trans-mission firm which serves customers in 11 western states through a 23,500 mile pipeline network. In addition, it has interests in the fields of petrochemicals, plastics, plas-tics, synthetic fibers, textiles, "agricultural chemicals, insurance, wire fabrication, oil and gas production, land development de-velopment and mining. |
